Central government employees are set to get hiked salary as the government had informed that they will get Dearness Allowance (DR) and Dearness Relief (DR) from July 1, 2021. The government had frozen DA of central government employees in the view of Covid 19 pandemic last year. Stopping DA of central government employees had directly impacted DR of central government pensioners.  

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Well, now that DA and DR restoration have government backing, what's bothering central government employees is whether they will be compensated for the three instalments of pending DAs for the period—January 1, 2020, July 1, 2020, and January 1, 2021 or not. 

Confusion on Pending DAs

Central government employees were hoping that clarity on the same will emerge in the last week of May, when National Council of JCM and the Department of Personnel & Training (DoPT) and the Ministry of Finance (Department of Expenditure) officials were allegedly supposed to meet and take a call on fate of over 1 crore central government employees. 

As per a report in Times Now, the officials of concerned three departments (mentioned above) were to take a call in a meeting in the last week of May. However, there is no official word on the same yet as even the government employees continue to remain in a fix about pending DAs. Infact, initially it was reported that the meeting to solve the logjam on pending DAs was to take place on May 8 itself, however, later it was deferred to the last week of May 2021 in the wake of 2nd wave of the pandemic. 

DA at 28 per cent?

Once the DA is restored, it is expected that central government may get an 11 per cent hike, taking their current DA of 17 per cent to 28 per cent.  This will increase salary of these employees significantly and will help pensioners too as their DR will also see similar jump.  

Earlier, Minister of State, Finance, Anurag Thakur in a written reply to Rajya Sabha on March 9 had said three pending DA instalments to central government employees will be “subsumed in the cumulative revised rates of DA effective from 1 July 2021.  

“Three pending instalments of Dearness Allowances of central government employees and Dearness Relief for pensioners to be restored prospectively. The rates will be subsumed in the cumulative revised rates of DA," said Thakur in the reply. 

Having said all that an official confirmation on pending DAs is yet to be made and it appears central government employees will have to wait a little longer than expected.